Baldwin Accounting CPA Orlando Florida
Client Login
Client Login
About Baldwin Accounting Baldwin Accounting Services Baldwin Accounting News Rates for Baldwin Accounting Careers at Baldwin Accounting Links Contact Baldwin Accounting Baldwin Accounting home page
 
 
Tax Tips



Tax time is here, but there are several things you can do to save taxes either now or in future years.

Steps to take now before April 15th, 2008

  • Invest in a Retirement or Education Account. The deadline is April 15th for the following:
    • IRA's - You may invest up to $4,000 per year ($5,000 if age 50 or over) and, depending upon your income, it may or may not be deductible
    • Roth IRA - You may invest up to $4,000 ($5,000 if age 50 or over) into a Roth IRA if the following conditions are met:

      • You did not invest into a traditional IRA

      • You do not exceed the Adjusted Gross Income limitations

    • CSEP (Coverdell Education Savings Account) - This is an account that can be set up for each child up to $2,000 per child and used for educational expenses. Your Adjusted Gross Income must be under $150,000 if filing jointly or under $95,000 if filing as single.

Things to do to save taxes in 2008

  • Look at purchasing a Hybrid vehicle in 2008. There are tax credits available for certain vehicles, but time is running out. The rules state that a tax credit ranging from $400 to $2,400 is available for Hybrid vehicles. However, once more than 60,000 of each vehicle model are sold, then the credit will no longer be available. Please contact the dealership to find out if the car you are interested in has reached that level.

  • Energy Tax savings for:

    • Business owners - Owners of Commercial Real Estate. If you install devices to make the building more energy efficient, then you may take a deduction for this expense.

    • Residential Owners - Personal Energy Tax Credit

      • Taxpayers will receive a Tax Credit of 10% of the cost of the improvements up to $500 with special limitations. The improvements include: windows, insulation, heat pumps, air conditioning, exterior doors, furnaces, etc.

      • Another personal energy credit up to $2,000 is available for the installation of the following:

        • Solar water heaters
        • Solar electricity equipment
        • Fuel cell plants

More valuable tips and important tax information :
1. 401K Contributions - Please make sure that you make changes to your 401K contribution now. Many companies only allow one change per year. Now is the time to make that change so it is in effect for the whole year. Increase your 401k contribution at least to the amount your employer matches because you literally double your money - It then grows tax free until you retire.

2. IRA Contributions - Make sure you make your IRA contributions before April 15th. Don’t wait until the last minute. If you are not covered by a retirement plan at work, then you can contribute up to $4,000 or up to $5,00 to your IRA if you are more than 50 years old and your spouse can do the same. You can save some taxes now if you make that contribution, but be sure to tell your financial institution that the IRA is for 2007 or 2008!

3. Roth IRA - This is a very good investment because even though you cannot take a tax deduction when contributing to a Roth IRA, when you take the money out, it is tax free. You need to make this deposit before April 15th, 2008.

4. Don’t forget to get your deductions for the following items when having your taxes prepared: a. Sales Tax deduction - 2007 is the last year that you can deduct sales tax. So if you bought any big ticket items make sure you get the deduction for the sales tax that you paid, even if you financed a car. b. Education expenses - Don’t forget about the tax credit that is available for your higher education expenses. c. Job Hunting Expenses - You may be able to deduct money spent on job hunting.

5. Moving Expenses - Since so many people are moving to Florida everyday, many will be eligible to deduct the moving expenses. If you moved here from out of state to start a new job here, then you can most likely deduct these expenses if your employer did not pay them.

6. Self-employed people owning corporations - Don’t forget that the deadline for corporations and some LLC’s is NOT April 15th, rather the deadline is March 15th. So you are running out of time. Many people that have recently started a corporation are not aware of this.






About | Our Services | News | Rates | Careers | Links
Site Map | Contact Us | Home | Employee Login
Privacy Policy Site Map